How 1% Changes Boost Profits Over 19%!

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Jeff redmonIn today’s show, Jeff Redmon and I discuss the power of Jeff’s 1+1+1=19 formula and how it can mean big profit gains for your company.

Jeff Redmon is a Senior Gazelles coach and the founder of Redmon Law Chartered. He has over 25 years of experience in business law and has served as a trusted advisor to countless business owners. Jeff also runs the Inner Circle of St. Croix Valley in the Twin Cities of Minneapolis and St. Paul.

Use 1+1+1=19 for Increased Savings from your Bottom Line

Jeff’s formula does not follow the traditional math rules we’ve all learned in school, so how does the 1+1+1=19 formula work?

To break it down simply, when you’re looking at a straightforward profit/loss statement, you’re often looking at four lines – sales, cost of the goods sold, overhead, and then the bottom line.

By increasing your top line by 1%, cutting your cost of goods/services by 1% and overhead by 1%; you can increase your net income by 19%. That’s how the 1+1+1=19 formula works.

Pursuing 1% changes these areas are actually worthwhile and can lead to huge profit gains. Jeff has taught this formula to over 100 business owners who have seen great benefits by making 1% adjustments to their company. He has seen between 7% to 80% improvement just by business owners working on his formula, so it’s not always a flat 19%.

Keep in mind that by increasing the net income by 19%, you also increase the value of your company long-term. So the 1+1+1=19 formula is not just for short-term cash, but it can also be applied to a long-term company selling strategy.

In Jeff’s workshop, he and other business owner attendees brainstorm on how they can increase the top line revenue by 1%. Once they’ve finished the exercise, they then think up various solutions on how they can save money for their company. Jeff had one client who brought in 10 million dollars in annual revenue and through this exercise was able to save $400,000 from their bottom line.

Although these strategies may sound simple, they can often be overlooked as we plan big marketing and growth initiative strategies to increase business sales. We often forget to apply these simple methods like looking within the company to save money when we’re constantly trying to think big and grow bigger.

Jeff believes that working on this formula with your leadership team is important, if not crucial. You will see better results in a group setting than if you were to sit down and try to find creative solutions by yourself.

Once you’ve completed these exercises and notice where you can make additional changes to save money, increase the top line and cut costs, do not suffer from analysis paralysis. Just pick 1-3 things that will make an impact and take action.

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Redmon Law Website
Jeff on LinkedIn
PDF of 1+1=1=19 Worksheet


Scaling Up is the best-selling book, by Verne Harnish and the team at Gazelles, on how the fastest growing companies succeed where so many others fail. My name is Bill Gallagher with Humanisteq Coaching and I’m one of the Gazelles business coaches. We help leadership teams to get the 4 Decisions around People, Strategy, Execution, and Cash right so that they can Scale Up successfully and beat the odds of business growth success. Our 4 Decisions are all part of the Rockefeller Habits 2.0 (from the original best-selling business book, Mastering the Rockefeller Habits).




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